Regulation (NAP) – Source of Funds Justification

Central Bank of S. T. P.	N A P; PERMANENT APPLICATION REGULATION	CODE; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE

Subject: Source of Funds Justification

Considering that Chapter III of Law 08/2013, the Anti-Money Laundering and Counter-Terrorist Financing Law, establishes preventive measures to be observed by financial institutions in the prevention of money laundering,

Considering that the duty to examine financial transactions carried out by clients is one of the most important measures within this scope;

Having regard to the requirement for justification of the source of funds, which are subject to financial transactions, as a fundamental component of the examination duty;

In these terms, the Central Bank of São Tomé and Príncipe, using the powers conferred upon it by letters d) and f) of paragraph 2 of Article 8 of its Organic Law, Law No. 8/92, combined with paragraph 8 of Article 10 and letter g) of Article 25 of Law 08/2013, the Anti-Money Laundering and Counter-Terrorist Financing Law, determines the following:

Article 1.
Source of Funds Justification

1. All financial institutions licensed by the Central Bank are required to require their clients to justify the source of funds, when the transaction in question is equal to or greater than STD 245,000,000.00 (two hundred and forty-five million dobras) or equivalent.

2. Financial institutions are also required to require justification of the source of funds, regardless of the amount, if they have doubts or suspect the lawfulness of the funds subject to financial transactions.

3. The declaration justifying the source of funds must be documented and made according to the attached model.

Reviewed/Approved ____________________ Revocation Details:

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Central Bank of S. T. P.	N A P; PERMANENT APPLICATION REGULATION	CODE; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE

Article 2.
Sanctioning Regime

Non-compliance with the provisions of this regulation is subject to sanctions under the Regulation on Supervisory Action and Application of Penalties.

Article 3.
Entry into Force

This NAP enters into force in accordance with legal provisions.

Central Bank of São Tomé and Príncipe, in São Tomé, 13 April 2015.

Reviewed/Approved ____________________ Revocation Details:

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Central Bank of S. T. P.	N A P; PERMANENT APPLICATION REGULATION	CODE; SB 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE

ANNEX I

SOURCE OF FUNDS JUSTIFICATION DECLARATION

Name of Ordering Party: ...........................................................................
Name of Beneficiary: ........................................................................
Type of Transaction: ..............................................................................

Amount: ........................................... (STD)

........................................... (EURO)

........................................... (DOLLAR)

Source of Funds:

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Reviewed/Approved ____________________ Revocation Details: